Olam International Plans IPO for Food Business Unit That Includes Coffee

Press photo by Olam Food Ingredients (OFI)

International food and agri-business giant Olam International has announced that the operating group that comprises its coffee divisions, Olam Food Ingredients (OFI), plans to seek an IPO in 2022.

Olam Coffee and Olam Specialty Coffee both fall under the OFI umbrella, which covers other ingredients coming from the cocoa, dairy, nuts and spices sectors. OFI was created last year as part of a broad re-organizational plan by Olam International.

[disclosure: Olam Specialty Coffee is a current advertising partner of Daily Coffee News and Roast magazine.]

Within the first half of 2022, OFI plans de-merge and seek a primary listing on the London Stock Exchange, with a concurrent listing on the Singapore Exchange. Olam said that OFI generated annual revenue in 2020 of US$9.1 billion, and EBIT of approximately $600 million. 

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In terms of organizational structure, coffee is one of the core business units of OFI, with Olam Specialty Coffee residing under the Olam Coffee umbrella.

Last fall, Olam Coffee outlined a broad in-house sustainability initiative called Olam Coffee LENS, designed in part to improve livelihoods of coffee farmers in Olam’s supply stream while aligning with UN sustainability goals. Olam Specialty Coffee, meanwhile, maintains offices and spot offerings on the west and east coasts of the United States, with a focus on higher-quality specialty offerings.

In an email to DCN, a representative of Olam International did not indicate any imminent changes to Olam’s coffee businesses in advance of OFI’s planned demerger and IPO.